Home improvement includes a variety of different projects, ranging from simple additions to major home remodels. In general, the purpose of any of these projects is to enhance the functionality, safety, or aesthetics of the home. Some of the most common reasons include making the house more comfortable, increasing energy efficiency, and enhancing resale value.
According to a recent survey, 72% of homeowners have a project on their to-do list in 2022. Many homeowners are looking to make small improvements, like installing a new front door or cleaning the gutters. However, it is not uncommon for homeowners to take on more complex projects.
Homeowners who want to do a home improvement project will need to think about their budget. They should also consider how they will finance the cost of the project. Ideally, they can fund the project outright, but in some cases they may need to use other forms of credit. A loan can come with a variable payoff period, which can add to the cost of the project. If you are considering financing the cost of the project with a loan, check the terms and conditions.
As a result of inflation, the cost of home improvement goods has increased, which will affect the amount you will spend on the project in the future. This is due to the fact that many home improvement items are manufactured in countries such as China and India, where the cost of materials has skyrocketed. Similarly, rising mortgage rates are also taking a toll on the remodeling industry.
The demand for home remodeling has been on the rise in the last two years. It’s estimated that the number of projects jumped from 94 million in 2013 to 134.8 million in 2021. That’s an increase of almost 20%.
For a majority of home owners, the cost of their home improvement projects is not an issue. While some do need to borrow against the equity of their homes, a good majority can afford to pay for their projects outright. Most homeowners can expect to spend roughly $7,746 on home improvement projects over the next two years, but this will depend on the economy and the project.
Home improvement projects will continue to grow, though they are expected to decelerate over the next few years. Harvard Joint Center for Housing Studies predicts that home remodeling will peak at the beginning of the year and then slow to a more sustainable rate.
As a result of the economic downturn, many Americans have cut back on their expenses. Despite this, the number of people who plan to improve their home in the next two years is nearly double the number who did so in the last two years.
Homeowners who are planning to do a home improvement project should do their research to ensure that they are hiring a reputable contractor. Check the company’s license, references, and insurance. You can also visit the Better Business Bureau or Consumer Affairs to verify the contractor’s credentials.